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TMI Blog2024 (11) TMI 1435X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment proceedings initiated beyond 4 years is invalid and void-ab-initio, since there was no failure on the part of Appellant as required in the 1st proviso to section 147 of the Act. Accordingly, the re-assessment proceedings so initiated be kindly quashed and appropriate relief be granted in this regard. 2. Without prejudice to other grounds, and on the facts and circumstances prevailing in the case and as per provisions and scheme of the Income-tax Act, 1961 ('the Act') it be held that the re-assessment proceeding completed are invalid, since Ld. Assessing Officer failed to provide copy of 'reasons to believe' during the course of assessment proceedings to completed be kindly quashed and appropriate relief be granted in this regard. 3. Without prejudice to other grounds, and on the facts and circumstances prevailing in the case and as per provisions and scheme of the Income-tax Act, 1961 ('the Act') it be held that the re-assessment proceeding completed are invalid, since the same has been completed without granting an opportunity of being heard through Virtual Conference, leading to gross violation of principle of natural justice. Accordingly, the re-assessment proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e grounds reproduced in paragraph 2 above. 6. When the appeal was taken up for hearing the Learned Authorized Representative for the Appellant pressed into service Ground No.1 raised in the present appeal challenging the validity of reassessment proceedings. The Learned Authorized Representative for the Appellant submitted that for the Assessment Year 2013-14 regular assessment under Section 143(3) of the Act was framed vide Assessment Order, dated 25/08/2015. During the course of assessment proceedings specific queries in relation to car hire expenses. He submitted that during the original assessment proceedings specific query in relation to the car hire expenses was sought by the Assessing Officer and and in response to the Appellant had furnished explanation vide letter, dated 24/08/2015. The Appellant had also placed before the Assessing Officer the copy of relevant Agreement and Ledger Account to support the payments made for car hiring charges as Annexure 3 to the aforesaid reply/letter. After taking all the facts into consideration the Assessing Officer had accepted the explanation/submission of the Appellant and not made any addition while passing the Assessment Order, dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is regard, the Learned Authorised Representative for the Appellant placed on paragraph 5 of the order impugned passed by the CIT(A) [at page 7 of 14] wherein written submissions dated 04/06/2024 have been reproduced by the CIT(A). 9. We have given thoughtful consideration to the rival submissions and perused on the record. 10. In the case of Commissioner of Income-tax, Central-I Vs. Pruthvi Brokers & Shareholders [2012] 349 ITR 336 (Bombay)/[2012] it was held by the Hon'ble Bombay High Court that the Appellant is entitled to raise fresh legal plea before the appellate authorized provided the relevant facts are on record, as is the case in the present appeal. Further, the plea challenged validity of reassessment proceedings was taken by the Appellant before the CIT(A), vide submission dated 04/06/2024 [reproduced at page 7 of 14 of the order passed by the CIT(A)]. Accordingly, given the facts and circumstance of the present case, we admit the additional plea raised by the Appellant and proceed to examine the reasons recorded for reopening of Assessment for the Assessment Year 2013-2014 [as reproduced in Assessment Order, dated 21/03/2022 at page 1 & 2 of 10] which read as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions contained in proviso to Section 147 of the Act. Reliance in this regard was placed on the judgment of the Hon'ble Bombay High Court in the case of IPCA Laboratories Ltd. (supra) relevant extract of which reads as under: "3. Mr. Trivedi, the learned senior counsel appearing on behalf of the assessee, submitted that the original assessment was made on 31-3-1995. It was for the assessment year 1992-93. It was made under section 143(3). He contended that under the proviso to section 147 of the Act, no action can be taken for reopening such assessment after the expiry of four years from the end of the assessment year 1992-93 on 31-3-1997 unless the respondent No. 1 has reason to believe that the assessee's income has escaped assessment by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. It was urged that, in the present case, an affidavit-in-reply has been filed on behalf of the department which clearly indicates that the reopening of the assessment by the department was based on change of opinion. It was, therefore, contended that the reopening of the assessment was bad in law as the pre-condition for iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly and truly all material facts. In the circumstances, the deeming provision in Explanation 2 to section 147 has no application to the facts of the present case. Section 149 only prescribes the time-limit for giving notice. We are required in this case to look into the facts in order to ascertain whether the precondition for the issue of a valid notice under section 148 has been fulfilled or not. We are satisfied on the facts of the present case that reopening is sought on the basis of change of opinion. Further, even in the reasons, there is nothing to indicate that reopening is sought on the ground of the failure on the part of the petitioner to disclose fully and truly all material facts. Conclusion: 6. In the circumstances, the impugned notice is set aside. Both the above writ petitions are made absolute in terms of prayer (b) with no order as to costs." (Emphasis Supplied) 12. In our view, the above judgment is applicable to the facts of the present case. In the present case also the reasons recorded do not spell out failure on the part of the Appellant to disclose fully and truly any material facts. Further, we find merit in the contention advanced on behalf of the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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